Europe
Dealers seek FRTB carve-out for Libor transition
Swaps could be hit with capital add-on as liquidity tails off in Libor
Eurozone mortgage lending back to pre-crisis levels – ECB
New loans reached 4.5% of GDP in the year to March 2018; average since 2001 is 4.4%
ECB unveils guidelines for hiring ‘ethical hackers’
“Tiber-EU” framework designed to help financial institutions toughen cyber defences
Rising wages set to increase inflation – ECB research
Strong GDP growth and employment creation underpins higher underlying price pressures
Banque de France paper analyses sovereign debt crisis
High NPL and sovereign debt holdings affected banks’ interbank funding access, paper finds
People: Bank of Spain governor nominates new deputy
Governor nominates first female candidate to deputy role; central banks in Colombia and Seychelles get new board members; IMF appoints new legal head
Draghi sounds confident note on inflation and growth
ECB president says data points to “solid and broad-based” growth in eurozone
UK regulators welcome Brexit ‘back-stop’ legislation
Draft law would allow firms temporary access to UK markets in event of ‘hard’ Brexit
Regling defends ESM’s role in safeguarding eurozone integrity during crisis
ESM chief says completing banking union would reduce risk of future financial turmoil
Risker Italian banks boosted funding from CCPs during crisis – paper
These banks may have been dropped by bilateral funding partners, researchers say
Competition and profits biggest factors in eurozone credit supply – ECB
Robust growth is expected in all main areas of credit in next quarter, says ECB
ECB criticises proposed changes to EU’s claim assignment law
Changes should put assignments under one legal jurisdiction, not three, ECB says
IMF urges European authorities to complete banking union
Fund backs ECB’s accommodative stance; rates should remain low after QE ends in December
EU negotiator questions UK’s approach to post-Brexit regulation
Chief negotiator Michel Barnier said to express strong doubts over UK approach in private meeting
Post-Brexit regulation must avoid ‘race to the bottom’ - FCA official
UK and EU negotiators must aim for customer protection and open markets, says Delfas
Branching out: foreign banks seek shelter from Fed rules
Foreign banks stashing repo businesses within their branches, outside Fed’s full gaze
Book notes: American default, by Sebastian Edwards
Edwards’ book is fascinating, well written and enjoyable, and provides an account of one of the US’s forgotten chapters of history
NPLs hindered financing for eurozone banks - Boston Fed paper
But Draghi’s August 2012 speech eased problems caused by sovereign debt holdings - researchers
ECB’s easing policies reduced inequality, paper says
Overall effects of monetary policy on income inequality are modest, paper finds
Carney: Brexit could trigger ‘extreme fragmentation’ of EU markets
Lack of agreement on derivatives likely to be more costly for European markets than UK ones, BoE governor says; stance contrasts sharply with European Commission
ECB approves of proposed NPL backstop
European Commission’s proposed law change will not prevent supervisors from ordering banks to increase coverage – ECB
Cyprus bail-ins were justified, ECJ rules
Court rejects claims of unfair treatment from bondholders, shareholders and large depositors
European Court of Justice overrules ECB on French banks’ leverage
ECB’s reasoning on treatment of French savings accounts was “manifestly incorrect”, court rules
EBA demands rapid reform at Maltese AML agency
Bank owner arrested in US and charged with financial crime on behalf of Iran